FEDERAL RESERVE JUST HAVE A TOUGHER DECISION ON INTEREST RATE HIKE

Two interesting developments:

US ISM Manufacturing Index fell to 48.6 last night
Atlanta Federal reserve cuts its Q4 US GDP growth rate to 1.4% from 1.8%

A manufacturing index below 50 means contraction. This could put pressure on the Federal Reserve to have a modest hike in interest rate in December or none at all.

If no hike, then Emerging markets will breathe a sigh of relief.

But... if could mean kicking the can further down the road.